This deck was presented at the 4th Annual Medical Device Connectivity Conference (MDCC4) where Shahid Shah, CEO of Netspective Communications, described how creating a data-centric Backend-as-a-Service (BaaS) is good business and can generate new revenue for medical device vendors. Topics covered: * Marketplace and industry challenges for device vendors * Why connectivity is good business * Why connectivity is a disruptive innovation * What is a “Back-end as a Service” (BaaS)? * There’s nothing special about health IT data that justifies complex, expensive, or special technology. Key takeaways: * Hardware, sensors, and software are transient businesses but data lives forever. He who owns, integrates, and uses data wins in the end. * Data from devices is too important and specialized to be left to software vendors, managed service providers, and system integrators. * Implement a data-centric hardware and BaaS technology strategy

1. Med Device Connectivity with a
BaaS is a Disruptive Innovation
Creating a data-centric Backend-as-a-Service (BaaS) is
good business and can generate new revenue
By Shahid N. Shah, CEO

2. NETSPECTIVE
Who is Shahid?
•
•
•
20+ years of embedded systems, software
engineering and multi-discipline complex IT
implementations (civilian government,
defense, health, finance, insurance)
12+ years specifically in healthcare IT and
medical devices experience
Entrepreneur and founder of multiple
startups
I blog at http://healthcareguy.com
Author of Chapter 13, “You’re
the CIO of your Own Office”
www.netspective.com
2

3. NETSPECTIVE
What you’ll learn in this briefing
Data from devices is too important to be left to others
Topics
•
•
•
•
•
Marketplace and industry challenges
for device vendors
Why connectivity is good business
Why connectivity is a disruptive
innovation
What is a “Back-end as a Service”
(BaaS)?
There’s nothing special about health
IT data that justifies complex,
expensive, or special technology.
www.netspective.com
Key takeaways
•
•
•
Hardware, sensors, and software are
transient businesses but data lives
forever. He who owns, integrates,
and uses data wins in the end.
Data from devices is too important
and specialized to be left to
software vendors, managed service
providers, and system integrators.
Implement a data-centric hardware
and BaaS technology strategy
3

4. NETSPECTIVE
Why connectivity is good business
Looming 2.3% excise
tax provision of the
Affordable Care Act
(ACA)
Longer product
development
timelines caused by
increased regulations
Higher customer
expectations due to
consumerization of
devices
Lower margins as a
reaction to
commodity
competition
More complex and
longer sales cycles as
devices need IT
approval
Raising money for
hardware is tougher
than software
www.netspective.com
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5. NETSPECTIVE
You can use OSS to disrupt health IT
Customers trapped by
their EHR vendors are
begging for a way out
Device vendors aren’t
benefiting from industry
trends but can if they’re
smart about it
Clinical customer goals
have shifted from basic
automation to advanced
process optimizations
www.netspective.com
Customer base has
shifted from clinical to
clinical + IT + system
integration
Device manufacturer’s
access to regulated IT
and system integration
skills is growing
5

6. NETSPECTIVE
Healthcare industry / market trends
Major market and regulatory trends that are causing customers and competitors to shift
You must learn and be able to talk to customers about all these terms
PPACA
ACO
PCMH
“Affordable Care
Act”
“Accountable
Care Org”
“Medical
Home”
Health
Home
www.netspective.com
mHealth
MU
“Meaningful Use”
PCPCC
“Patient Centered
Care”
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7. NETSPECTIVE
Why care about MU?
If you’re not talking about MU you’ll find it harder to get in the door
“Enable significant and measurable improvements in population
health through a transformed delivery system.”
2011
2015
MU Stage 1
MU Stage 2
MU Stage 3
No Impact
www.netspective.com
2013
Indirect Impact:
Start planning for
MU
Direct Impact:
Device integration
proposed
7

8. NETSPECTIVE
Implications of healthcare trends
PPACA
ACO
Software
Regulated IT and Systems
Integration Services
MU
Health
Home
www.netspective.com
PCMH
mHealth
DATA
Evidence Based Medicine
Comparative Effectiveness
8

9. NETSPECTIVE
Don’t give up data to others without a fight
Software vendors, systems integrators, and others don’t have your best interest in mind
Device
Teaming
Cloud
Services
Patient
Self-Management
Platforms
SSL VPN
Patient Context
Monitoring
BaaS Gateway
(DDS, XMPP ESB)
,
Device
Data
Data Transformation (ESB, HL7)
Remote
Surveillance
Management
Dashboards
HIT
Integration
Report
Generation
Device reimbursement
www.netspective.com
Enterprise Data
RCM, Financials,
EHRs
Device
Management
Cross Device
App Workflows
Device Utilization
Device profitability
Alarm
Notifications
Device Inventory
9

10. NETSPECTIVE
New revenue centers in software and services
Build the right roadmap so that you don’t leave new revenue on the table
2 year ranking comparison of Top 30 HIT firms by offering type. Pure play firms are failing behind
100%
Focus on
Services and
Solutions is
the way to go
80%
60%
Up
% of all
firms by 40%
offering
Down
Flat
20%
Ranking
YoY
0%
Hardware
Software
Services
Source - The 2012 Healthcare Informatics 100 ranks the leading 100 vendors by revenues derived from healthcare IT products and services earned in the U.S.
www.netspective.com
10

11. NETSPECTIVE
How do you get started?
Consider Dr. Julian Goldman’s proposal on improving the quality of clinical alarms
1.
2.
3.
4.
Use “integrated platform” to create “smarter” alarms by using
multiple data sources for earlier detection of events and more
meaningful alarms by improving alarm sensitivity and specificity.
(e.g. detect repeat small O2 desats that would not currently
trigger a conventional alarm). Crowd-source this activity.
Set “wider” alarm limits to decrease nuisance and false alarms
on each monitor/device. (e.g. SpO2 alarm at 80%). This
maintains “device level” alarms.
Collect clinical and alarm performance data to develop
algorithms and evaluate system performance. Document gaps
in current data sources and device capabilities.
Stop/adjust IV pump based on above.
www.netspective.com
11

12. NETSPECTIVE
Data-centric device architecture
Extensibility and adaptability will be key in a data-centric world
5
Device Components
• Presence
• Messaging
• Registration
• JDBC, Query
Sensors
Storage
Event Architecture
Display
6
App
#1
App
#2
Plugins
4
Location
Aware
Connectivity Layer (DDS, HTTP, XMPP)
3
Device OS
(QNX, Linux, Windows)
www.netspective.com
3rd Party Plugins
Web Server, IM Client
1
7
Plugin Container
2
Security and Management Layer
12

13. NETSPECTIVE
Ensure your devices fit in a modern IT architecture
Create a Back-end as a Service (BaaS) for your devices
Device
Teaming
Cloud
Services
Patient
Self-Management
Platforms
SSL VPN
Patient Context
Monitoring
BaaS Gateway
(DDS, XMPP ESB)
,
Device
Data
Data Transformation (ESB, HL7)
Remote
Surveillance
Management
Dashboards
HIT
Integration
Report
Generation
Device reimbursement
www.netspective.com
Enterprise Data
RCM, Financials,
EHRs
Device
Management
Cross Device
App Workflows
Device Utilization
Device profitability
Alarm
Notifications
Inventory
13

14. Visit
http://www.netspective.com
http://www.healthcareguy.com
E-mail shahid.shah@netspective.com
Follow @ShahidNShah
Call 202-713-5409
Thank You